ET Intelligence Group: The four listed companies in the flexible workspace sector including WeWork India Management, Smartworks Coworking Spaces, IndiQube Spaces and Awfis Space Solutions ended FY26 on a strong note, driven by sustained demand from global capability centres, a shift toward premium office assets, and rising adoption of managed office formats.The companies delivered double-digit revenue growth along with margin expansion. They have guided for over 20% growth in the current fiscal year. The margin expansion is driven less by pricing and more by the maturation of centres and scale efficiencies, as fixed costs are absorbed over a larger occupancy base. Margins are expected to expand further as a rising share of centres cross maturity thresholds, strengthening operating leverage.Also read | How an extension of Gurugram is becoming Delhi NCR’s next real estate hotspotDespite their stellar quarterly show, the stocks of these companies have failed to earn returns so far this year given the weakness in the broader market . However, revenue visibility and margin expansion augur well for the sector.WeWork India's occupancy level reached a record high of 86.9%, reflecting robust demand across its portfolio, particularly from enterprise clients, which contribute about 77% of its revenue. More than half of the new demand is coming from existing clients expanding within its network. It has locked ₹1,885 crore of core revenue so far for FY27. BOB Capital Markets expects WeWork to grow at a slower pace in area expansion due to a higher base, but strong occupancy should support revenue growth and stable margins. The broker has retained a 'buy' rating on the stock with a target price of ₹765.Smartworks has guided for 28-30% revenue growth for FY27. A high traction from enterprise clients has enabled the company to lock ₹5,200 crore of rental income or nearly 83% of the projected revenue for the year. Enterprise clients account for 90% of company's rental income. BOB Capital Markets has maintained 'buy' on stock with a target price of ₹547 given increased leasable area, improved occupancy and operating margins.Also read | Real estate portfolio management firms to tap India’s billionaire populationIndiQube maintained stable occupancy levels at 88% in FY26 from 87% in FY25. The contribution of value-added services rose to 15% of revenue from 12% a year ago. However, BOB Capital Markets has downgraded stock to 'hold' and trimmed target price by 28% to ₹167 citing macro headwinds and the lack of near-term growth catalysts.Awfis expanded Ebitda margin to 36.8% in FY26 from 33.3% in previous year, driven by higher operating leverage, premiumisation and scale. Given its elevated capex towards premium offerings and slower revenue growth, BOB Capital has pared earnings estimate by 10% over FY27-28, to factor in slower revenue trajectory and softer adjusted Ebitda. Brokerage has maintained a 'hold' rating with target price of ₹364.